Developers plan to transform the area around Valley View Center into a mixed-used development with condos, hotels, office space and Bellagio-style fountains.
Dallas Midtown is the vision of Beck Ventures, the developer that purchased the mall last year.
"This will really have the rubber-band effect that's going to be able to snap back all of that development into the city of Dallas," said Scott Beck, Beck Ventures president.
The $3 billion development will include condominiums, two luxury hotels, 4 million square feet of office space and a gondola-lift system that will connect Dallas Midtown to the Galleria Dallas.
Valley View Center, where change is already happening, will remain.
The mall's occupancy level has more than doubled to 86 percent from 40 percent, in large part due to the artists such as Kiki and Doug Winters, the directors of the Gallery at Midtown & Artist Studio.
"I remember when this mall was completely the coolest place on earth and once we talked to the Becks, we realized what their vision [is]," Doug Winters said. "I think it's going to be the coolest place to be again."
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The Winters are among dozens of artists that are fusing art and shopping, something that Beck said would be Dallas Midtown's mainstay.
The potential benefits of the project are endless, city leaders say.
"You see here, we're not a recession," Councilman Tennell Atkins said. "We are growing our tax base, our tax breaks. We're also growing our population."
Construction on Dallas Midtown will begin in early 2014.